Yatsen Holding Limited (YSG) saw its stock price surge 5.41% in pre-market trading on Monday, following the release of its impressive third-quarter financial results for 2025. The Chinese beauty company reported significant revenue growth and improved profitability, sparking investor optimism.
According to the earnings report, Yatsen's total net revenues for Q3 2025 climbed to RMB998.4 million (US$140.2 million), marking a substantial 47.5% increase from the same period last year. The company's Skincare Brands segment was a standout performer, with net revenues soaring 83.2% year-over-year to RMB490.8 million (US$68.9 million), now accounting for 49.2% of total net revenues compared to 39.6% in the previous year.
Yatsen also demonstrated improved profitability, with gross margin expanding to 78.2% from 75.9% in the prior year period. The company's net loss narrowed by 41.9% to RMB70.4 million (US$9.9 million), while non-GAAP net loss decreased by 32.8% to RMB51.5 million (US$7.2 million). Adding to the positive sentiment, Yatsen provided an optimistic outlook for the fourth quarter, projecting total net revenues between RMB1.32 billion and RMB1.49 billion, representing a year-over-year increase of approximately 15% to 30%. The company's strong cash position of RMB1.16 billion (US$162.6 million) as of September 30, 2025, further bolstered investor confidence in its financial stability and growth potential.
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